Malaysians and Indonesians did not support the U.S. in the war against Iraq

Kazi Mahmood, IOL Southeast Asia Correspondent

KUALA LUMPUR, April 17 (IslamOnline.net) - The U.S. has urged the Philippines to hunt for Saddam Hussein’s close allies and to comb its banking and financial system of any possible ill-gotten wealth Saddam’s henchmen would have siphoned and laundered in Manila.

The same request will be extended to Malaysia, Indonesia, Brunei and Thailand despite the fact that the possibility of Saddam or his close associates hiding money in Asia sounds unrealistic, an expert in Manila told IslamOnline.net on Thursday, April 17.

Malaysia and Indonesia did not support the U.S. in the war against Iraq and are insisting that the U.S. armed forces should leave Iraq after ousting Saddam.

It is possible that these two nations would not cooperate with the U.S. on this matter since they still recognizes the Saddam regime as the legal one and has not ordered Iraq’s Ambassadors in Kuala Lumpur and Jakarta to leave.

Malaysian newspapers on Wednesday, April 16, said U.S. officials have tipped the Malaysian authorities that Iraqi high officials might have sought refuge in Malaysia.

However the paper, the Malay Mail English daily did not indicate whether the U.S. has asked Malaysia to arrest and extradite any Iraqi officials after the war in Iraq is declared over.

In Manila, the U.S. Embassy urged the authorities to be on the look out for any possible launder of money siphoned by Saddam and his close allies into the Philippines, reported the Philippine Star on Tuesday, April 15.

The Philippines has also been given specific orders by the United States to be on the alert for any possibility that members of the Saddam entourage and cabinet might have sought refuge “incognito” there, the expert, who asked not to be named, told IslamOnline.net.

While this information could not be confirmed, it was clear that the search for Saddam has extended to the South East Asian region and that the U.S. will do everything to put its hands on the former Iraqi leader and his huge financial empire.

IslamOnline.net was however informed in Kuala Lumpur that if any of the officials of the Iraqi regime or members of Saddam’s family would settle in South East Asia, they would be using fake identities or passports.

The U.S. is pursing the funds it suspects the fallen Iraqi regime has hidden outside Iraq for its efforts to reconstruct Iraq, the U.S. Embassy said according to the Philippine Star.

The U.S. actually wrote to the Bangko Sentral ng Pilipinas (BSP) – Central Bank of Philippines - Governor Rafael Buenaventura last March.

The Anti-Money Laundering Council (ALC), in Manila in response to the U.S. government’s request, will issue a circular for institutions under the BSP, Securities and Exchange Commission and the Insurance Commission to look into possible Iraqi assets under their jurisdiction.

Iraqi Money

These assets, if any, will then be confiscated and possibly liquidated or handed over to the U.S. for liquidation and the proceeds would be used for the reconstruction of Iraq or for U.S.’s war bills in Iraq.

In the letter the U.S. requested the government of President Gloria Macapagal Arroyo to "identify, freeze and prepare to transfer for the benefit of the Iraqi people any Iraqi government assets, as well as any ill-gotten gains of Hussein or his regime in the Philippines that have not already been frozen."

"The collective goal is to bring Iraqi resources as well as ill-gotten gains of Hussein and his regime to assist the people of Iraq and the reconstruction of their country," the U.S. said in its letter.

Washington acknowledged that each country will have to determine the most appropriate means to achieve this collective goal.

Nevertheless, it is unsure that Malaysia and Indonesia will accede to the request by the U.S. and it is as unclear whether the U.S. has made such requests to Kuala Lumpur and Jakarta or Brunei.

It may find better cooperation with Thailand whose Prime Minister Thacksin Shinawatra supported the U.S. invasion of Iraq. It is highly probable that Iraqi officials or illegal money would be found in Thailand but not in Malaysia or Indonesia, a money lender in Malaysia said to IslamOnline.net.

Iraqi money is available in stacks in Malaysia and Indonesia, the source said, adding that this money however belongs to local individuals who took the risks of making deals with Iraq well before the U.S. invasion of the Middle Eastern nation.

Iranian and Iraqi individuals too brought stacks of Iraqi money to the region in order to exchange it to businesses involved in the oil for food deals with Iraq and the United Nations, the Money Changer who has a small shop in Masjid India said.

On the other hand, Iraqi envoys and embassy officials in this region are likely to apply for political asylum in Jordan or Syria once a new Iraqi government is installed in Baghdad.

The Iraqi diplomats are expected to turn over their funds in a Philippine bank to be used by their successor in Manila. Embassy staffs would not be deported for humanitarian reasons.